FINANCIAL SERVICES GUIDE

Transcription

1 FINANCIAL SERVICES GUIDE 1

2 ABOUT PROFILE FINANCIAL SERVICES Profile Financial Services Pty Ltd is a boutique firm of financial and investment strategists, with a long history of delivering quality advice and measurable value to our clients and their families. We were originally established in 1986, and were granted an Australian Financial Services Licence in We are 100% owned by staff, with no ownership or licensing ties to any other financial institution, so we have complete control over our offering to you. Our financial planners are experienced and highly qualified, and have been independently recognised by the Beddoes Institute as among the most trusted advisers in Australia. Our clients come from all walks of life. We advise young people just starting out, small business owners, professionals and senior executives, and retirees. What all our clients have in common is a commitment to achieve their goals, and a belief that working in partnership with capable professionals is the best way to help them get there. We take great pride in helping our clients achieve their financial goals. Whether that s to become or remain financially independent, to leave a legacy for future generations, to make a lasting difference in society through philanthropy whatever your dream, we would be very proud if we could help you realise it. We are a strong supporter of the professional development of our industry. We are a professional practice of the Financial Planning Association of Australia as well as a member of the Boutique Financial Planners Group. ABN: Australian Financial Services Licence No Australian Credit Licence No Date prepared: 2 July 2018 THE PROFILE FINANCIAL SERVICES GUIDE ABOUT THIS DOCUMENT This Financial Services Guide describes our financial planning and advisory services, to help you to decide whether to use them. It contains information about: the services we can provide to you; the products we can advise you on; how we and your planner are paid; our professional indemnity insurance; and what you should do if you are not satisfied with our services. OTHER DOCUMENTS YOU MAY RECEIVE We may give you other documents when providing our services. These can include: Statements of Advice If we provide you with advice about your personal circumstances, we will set this out in a Statement of Advice (or in some cases a shorter document called a Record of Advice). This will also tell you how we will be paid for the specific advice provided. If we provide further advice to you, we may not give you a Statement of Advice but will record the advice. You can ask us for a copy of our record by calling us. Product Disclosure Statements If we recommend that you acquire a financial product, we will provide you with a Product Disclosure Statement containing information about the product s features and risks. Ongoing Services Agreements and Fee Disclosure Statements If you engage us to provide ongoing advice services, we will provide you with an Ongoing Service Agreement, and send you annual Fee Disclosure Statements. The Ongoing Service Agreement outlines the nature of the ongoing services we will provide and how we will charge for them, and will be updated annually to reflect any changes in the arrangement. Fee Disclosure Statements will outline the services we have provided and fees you have paid in the previous 12 months. For clients who first engage us to provide ongoing services after 1 July 2013, we will ask you to confirm every two years that you wish to continue our engagement. OUR FINANCIAL SERVICES Profile is responsible for the advisory and financial services your planner provides. In making recommendations and providing advice, our planners act on behalf of you, our client. 2

3 We offer a broad range of financial advisory services: General financial strategy and planning; Wealth accumulation / creation; Debt reduction; Budgeting and cashflow management; Corporate and personal superannuation; Self Managed Superannuation Funds (SMSFs); Redundancy; Estate planning; Financial structures; Retirement and pension planning; Centrelink; Business and personal insurance; Gearing; and Investment strategy and portfolio administration. FINANCIAL PRODUCTS We are licensed to advise and deal in the following products: Deposit and payment products; Derivatives (limited to old law securities options contracts and warrants); Government debentures, stocks and bonds; Life insurance investment products; Life Insurance risk products; Managed investment schemes; Investor-directed portfolio services; Superannuation and retirement savings account products; Securities; and Margin lending. We also hold an Australian Credit Licence which authorises us to advise on credit products. Each of our planners have different accreditations so may be able to advise you in some or all of these areas. If your planner believes you may benefit from a product or service in which they are not accredited, they will work with another planner to ensure you receive advice in appropriate areas. Further information regarding your planner is available on our website and on the Australian Securities and Investments Commission s (ASIC s) Financial advisers register. We recommend that you seek independent tax and legal advice regarding our planner s recommendations and confirm your entitlement to social security and other government benefits with relevant government departments. PROVIDING INSTRUCTIONS You can provide us with instructions by fax, or in writing. Generally we cannot accept instructions by telephone, but in some cases where time is critical, you may instruct us by telephone and we will re-confirm your instructions to you in writing. If you transact in ASX listed shares, in some circumstances a transaction may be amended or cancelled by your broker without your consent in order to comply with ASX rules. We will notify you if we become aware that this has occurred. OUR PROFESSIONAL INDEMNITY INSURANCE We have professional indemnity insurance in place which covers us for any errors or mistakes relating to our financial planning services. This insurance meets the requirements of the Corporations Act and covers our services and those of our planners, including after they cease working for us, provided we notify the insurer of claims when they arise and within the relevant policy period. PRIVACY We use your personal information to provide you with financial advice, arrange for you to acquire, dispose of or vary financial products and to enable us to comply with legislative requirements. If you do not provide us with full information, we may not be able to provide you with advice or services, and there is a risk that our advice may not be appropriate for you. We provide your information to product providers with whom you have chosen to deal, to the Financial Planning Association if required to ensure ongoing compliance with professional standards, to ASIC for compliance purposes, and to various third parties in accordance with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act We will not trade, rent or sell your information. We will only send information overseas if we reasonably believe that country has privacy laws similar to Australia, we take steps to ensure our privacy principles are adhered to, if you consent, or if we are required to by law. From time to time we will use your contact details to send you offers, updates, articles and newsletters about products and services we believe will be of interest to you. We will always give you the option of electing not to receive these communications and you can unsubscribe at any time by notifying us that you wish to do so. For information about how to access or correct the information we hold about you, or how to complain if you think we have breached privacy laws, ask us for a copy of our Privacy Policy by contacting us on or visiting our website at HOW WE ARE PAID Initial advice There is no fee payable for your initial meeting with us. 3

4 If you ask us to provide you with advice, we will charge a Strategy and Plan Fee. This will be based on the complexity of the advice you need. Our minimum fee is $2,500 (incl. GST) with most being in the range $3,000 - $8,000 (incl. GST). Following receipt of our advice you are not obliged to proceed further with us. You can choose to implement our recommendations yourself, or ask us to do this for you. Advice implementation If you ask us to do so, we will implement our recommendations for you. For investment products We will charge an Implementation Fee. Depending on the nature of the implementation, we may agree to deduct the amount of the Strategy and Plan Fee from the Implementation Fee. The Implementation Fee is usually based on the level of funds to be invested as follows: ASSETS TO BE INVESTED FEE (INCL. GST) First $1m 1.100% Next $1m ($1m - less than $2m) Next $1m ($2m - less than $3m) Next $1m ($3m - less than $4m) Amounts $4m and above 0.825% 0.550% 0.275% 0.110%, or a flat dollar fee across the whole portfolio For complex or non-product related implementations, we will quote you a fixed fee based on complexity. For insurance products Insurers can pay us an initial (first year) and ongoing (year 2+) commission as a percentage of the annual premium while you hold your policy. This is included in the cost of your premium and is not an additional cost to you. The maximum rates of commission (%) we can receive are outlined in the table below: INSURANCE ISSUED INITIAL COMMISSION*^ ONGOING COMMISSION*^ Prior 1 Jan 2018 Up to 110% Up to 100% 1 Jan Up to 80% Up to 20% Dec Jan Dec 2019 Up to 70% Up to 20% From 1 Jan 2020 Up to 60% Up to 20% *Excludes any GST payable in the premium. ^Calculated as commission rate (%) x premium. In certain circumstances if you increase or acquire another insurance product due to exercising an option to do so from an existing insurance policy that was in force prior to 1 January 2018, we will continue to receive pre-1 January 2018 commission rates. The amount of any commission we will receive will be disclosed to you in our Statement of Advice, and any Strategy and Plan Fee and Profile Partner Fee payable will be rebated against the commission we receive. Ongoing service If you enter an Ongoing Service Agreement with us, we will charge a Profile Partner Fee. This will depend on the nature of the ongoing advice you require. For investment advice and services this will be an agreed dollar fee or an asset based fee. For insurance advice and services this is usually covered by the ongoing commission we receive from insurers. Additional capital investments Once your portfolio has been established, if you invest new capital we will charge an Additional Capital Investment Fee based on the same scale that applies to the implementation of investment advice. This fee covers reviewing your portfolio, advising on the investment of your money, and preparing a Statement of Advice or Record of Advice as appropriate. Investment management There are two ways you can invest in investment products: By investing separately in individual products; or By investing though our custom designed diversified investment portfolios issued by EQT Responsible Entity Services Limited (EQT), for which we are the investment manager. Where appropriate, our preferred approach is to recommend investment through our investment portfolios, but if these are not suitable for you we will recommend alternative investments. As investment manager of the Profile Preservation and Accumulation Portfolios, Profile receives % pa (including GST) of the net asset value invested in the Portfolios from the Responsible Entity (EQT). Profile may also be entitled to receive a performance fee of 10.25% (including GST) of any outperformance above the higher of the High Water Mark and the Cash Hurdle. Profile uses these fees to defray the costs of investment management including asset consulting, additional investment resources, financial models, risk management systems and comprehensive research. Full details of how these fees are calculated are included in your Statement of Advice and the Product Disclosure Statement. 4

5 These fees are deducted from the Portfolios before investment returns are calculated there is no separate charge to you. In some cases, we may negotiate an Individual Performance Fee with clients who invest outside our investment portfolios. Referrals If you have been referred to Profile by an external party, Profile may pay that party a fee. The fee will not involve any additional cost to you. Any referral fees payable will be detailed in your Statement of Advice. HOW YOUR PLANNER IS PAID Our financial planners receive a salary and are entitled to participate in a bonus scheme. The salary has a fixed component based on the planner s qualifications, experience and performance, and a variable component based on up to 4% of the fees paid by their clients during the previous year. The bonus is calculated based on balanced preset performance indicators covering quality of advice, teamwork, client satisfaction, financial targets, workflow and professional development. It is up to a maximum of 30% of the fees generated by the planner. If a planner is shareholder of Profile Financial Services Pty Ltd, they may also receive dividend payments and/or achieve capital growth in respect of their shareholding. Other benefits We maintain registers of any soft dollar benefits that we or our planners receive. This can be viewed on request. COMPLAINTS AND DISPUTE RESOLUTION If you have a complaint about the services we provide, you should take the following steps: First, contact your planner to explain your concerns. If your complaint is not satisfactorily resolved within 3 business days, contact our Compliance Manager on (02) , by ing admin@profileservices.com.au or by writing to: PO Box 3737, Parramatta CBD NSW We will try to resolve your complaint quickly and fairly. If you do not get a satisfactory outcome you can refer your complaint to the Financial Ombudsman Service (FOS) by calling or writing to: GPO Box 3, Melbourne VIC FOS provides an independent dispute resolution service that is available to consumers free of charge. We and our planners are members of the Financial Planning Association of Australia (FPA) and are bound by their Code of Professional Practice. If you have a complaint about our conduct you can raise it with the FPA by writing to: The Investigations Manager, Financial Planning Association of Australia Ltd, GPO Box 4285, Sydney NSW The FPA has no power to award any compensation, but can fine and expel members for breaching the Code. NEXT STEPS If you have any questions, please don t hesitate to contact us. Refer to the final page of this Financial Services Guide for our contact details. We look forward to welcoming you as a client! 5

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